For historical information on the key ECB interest rates, see BPstat.
The key ECB interest rates are fundamental for implementing monetary policy and for signalling the monetary policy stance to economic agents.
The marginal lending facility rate normally provides a ceiling for the overnight interbank market interest rate, while the deposit facility rate normally provides a floor. This creates a corridor for the interbank market overnight interest rate. In times of excess liquidity, the overnight interest rate tends to stay close to the deposit facility rate.
Key interest rates play an important role in the formation of the short-term interest rates in the euro area interbank money market.
€STR
The €STR (Euro Short Term Rate) is the new overnight euro money market reference rate and is also considered the euro risk-free interest rate. This rate was first published by the ECB, its administrator, on 2 October 2019.
The €STR is based on daily borrowing transactions in the euro unsecured overnight money market, with transactions not only in the interbank market, but also with financial entities other than banks, such as insurers, pension funds and money market funds.
EURIBOR
The EURIBOR rates (short for Euro Interbank Offered Rate) are the benchmark rates of the euro money market for maturities ranging from one week to one year.
These rates are also used as reference rates in a wide range of financial products, such as variable-rate housing loans and interest rate instruments (bonds and derivatives). They correspond to rates at which credit institutions in EU and EFTA countries can borrow in euro in the wholesale unsecured money market for the various maturities.
In August 2016, EURIBOR rates were declared a critical benchmark of systemic importance for the financial system by the European Commission.
EURIBOR rates are calculated under a hybrid methodology which prioritises, where possible, the use of real transactions in the money market. When no transactions are conducted, the hybrid methodology relies on other market price sources and expert judgement to guarantee the robustness of rates.
The European Money Markets Institute (EMMI) is the administrator of these rates. This institute performs an annual assessment of the determination methodology for EURIBOR rates.
EURIBOR rates are considered compliant with the EU Benchmark Regulation.